Finance broking peak body fears budget cuts may backfire

The national peak body representing Australia’s finance brokers has warned that fierce budget cuts may cause a downturn in the housing market and even put pressure on the ability of some to pay their mortgages.

CEO of the Finance Brokers Association of Australia Peter White says there is no point squeezing money out of one part of the economy only to see another part crumble.

“While recognising that the Government must look at measures to balance the budget, we also want to ensure that consumers can still meet their mortgage obligations and that new home buyers are still able to enter the market,” he said.

“The housing market has a huge flow-on effect and is such an important part of our national economy.”

Mr White said young families in particular must be able to meet mortgage payments both now and when they take time off work to have children.

The 35 year veteran of the finance broking industry and one of the nation’s leading voices in the sector said consumer confidence in the housing market was vital for economic growth.

“In this budget, the Government cannot afford to do anything that jeopardises confidence in the housing market, because so many industries and people are affected when this market slows.”